Gov. Ned Lamont joined the U.S. Deputy Secretary of the Treasury as well as elected officials from other states Monday in announcing the allocation of federal funds to support small business growth.

As a part of the federal State Small Business Credit Initiative program, a result of the American Rescue Plan Act, Connecticut is set to receive about $120 million in federal funding for its CT Innovations Equity Fund equity capital program, and its CT Works Fund loan participation program. Both programs are run by the state Department of Economic and Community Development.

“This is one of the most long-lasting investments coming out of the American Rescue Plan,” Lamont said during a virtual news conference Monday afternoon. “Near-term, the American Rescue Plan kept small businesses going during an incredibly tough time. Now let’s turn this into an opportunity to help these companies grow and expand.”

CT Innovations is the state’s venture capital arm, and has about $500 million to distribute. Lamont said Monday that it is meant to pay special attention to helping minority entrepreneurs from underserved communities build up their businesses. There are CT Works career centers throughout the state.

Lamont said the state’s plan is to leverage the $120 million of federal money alongside straightforward venture capital money and investments from banks.

He added “$120 million could grow to a billion in investments and represent tens of thousands of jobs.”

“These monies are going to allow us to build out the supply chain so wind and energy efficiency become a bigger piece of what we’re trying to do environmentally as well,” Lamont added.

U.S. Rep. Joe Courtney, D-2nd District, was slated to attend but could not make the news conference on Monday.

The SSBCI program has a total of $10 billion to distribute among states, territories and tribal governments “to empower small businesses to access capital needed to invest in job-creating opportunities as the country emerges from the pandemic,” according to the program’s fact sheet.

“The funds will also support recipient jurisdictions in promoting American entrepreneurship and democratizing access to startup capital across the country, including in underserved communities,” the program’s fact sheet continues.

Nine states have had plans for the funds approved. As of Monday, the Treasury had approved the distribution of more than $1.5 billion of the $10 billion.

U.S. Deputy Secretary of the Treasury Wally Adeyemo said the program is designed for states to give entrepreneurs money to help their business that they otherwise wouldn’t have access to.

“Small businesses form the core of our economy. They create the majority of jobs in America,” Ademeyo said Monday. “They are critical to the infrastructure of our communities and this is particularly clear with communities of color.”

Gene Sperling, a senior advisor to President Joe Biden, echoed Ademeyo, saying that small businesses led by people of color or women are “unfairly denied access to capital.”

s.spinella@theday.com